New oil and gas discoveries fall to 40-year low

The number of new oil and gas discoveries has fallen to a 40-year low. Nikkei Asia reports that new deposits are being found less frequently in the world, citing analytical data from industry organizations.

Just 19 commercially significant oil and gas discoveries were discovered last year, the lowest number since 1980, according to the Global Energy Monitor. The volume of discovered reserves was also less than one tenth of the peak level in 2013.

“The number of new discoveries has fallen to the lowest level in more than 40 years, and production from these fields has fallen to one-tenth of its 2013 peak as reduced investment from global energy companies puts pressure on exploration activity,” the analysts explained.

Since 2020, oil giants have faced pressure from environmental groups and investors to shift capital into renewable energy. As a result, investments in the development of oil and gas fields last year fell to $540 billion (minus 40 percent compared to 2010). Instead, conglomerates are directing funds to expand existing fields.

Another reason was the growing complexity and cost of exploration, as new deposits are sought in deep-sea and offshore areas. As a result, it can now take about 20 years from receiving an exploration site to the start of production.